{"id":582745,"date":"2025-06-05T15:24:28","date_gmt":"2025-06-05T22:24:28","guid":{"rendered":"https:\/\/www.genesys.com\/blog\/post\/the-competitive-advantage-of-bank-branches-in-the-digital-age"},"modified":"2025-07-14T07:27:16","modified_gmt":"2025-07-14T14:27:16","slug":"the-competitive-advantage-of-bank-branches-in-the-digital-age","status":"publish","type":"blog","link":"https:\/\/www.genesys.com\/en-gb\/blog\/post\/the-competitive-advantage-of-bank-branches-in-the-digital-age","title":{"rendered":"The Competitive Advantage of Bank Branches in the Digital Age"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]Banks are steadily closing branch offices in favour of digital-only engagements, but it could be costing these financial institutions once-loyal customers.<\/span><\/p>\n

Bank branches have long served as the human touchpoint of the financial services world. Yet<\/span> traditional banks continue to close them at accelerating rates<\/span><\/a>. On the surface, this appears to make sense \u2013 branches are expensive to run due to staffing, real estate and infrastructure costs.\u00a0<\/span><\/p>\n

This narrow focus on cost overlooks a critical truth: Bank branches are strategic assets that drive value through personal relationships and product sales. But because they\u2019re typically isolated from full integration with a bank\u2019s sales and service operations, their unique role as generators of a high-value product or service is often overlooked.<\/span>[\/vc_column_text][vc_row_inner][vc_column_inner][vc_column_text css=””]<\/p>\n

When Bank Branches Disappear So Do Customers<\/span><\/h3>\n

When retail banks close branches, they don\u2019t just reduce costs, they can erode a key competitive advantage. That\u2019s because traditional banks with branches not only compete with other retail banks but also with direct-only banks, neobanks and fintechs.<\/span><\/p>\n

The closure of a branch is an invitation to customers to think about their existing banking relationship(s)<\/a>. If the advantage of physical proximity and possible personal support and advice is no longer given, other decision criteria are used \u2014 primarily if there is another bank with a branch nearby, but also the level of fees and interest rates, user-friendliness in digital banking, a special product portfolio or additional services.\u00a0<\/span><\/p>\n

In these comparisons, the previously used bank usually loses out, as branch proximity might be considered as the most important factor. And if not, direct banks, neobanks and fintechs have a different cost structure, allowing them to offer lower fees and more attractive interest rates, but also focus more strongly on the customer experience.<\/span>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text css=””]<\/p>\n

Are Bank Branches Actually a Cash Cow?<\/span><\/h3>\n

Closing a bank branch is a cost-driven decision. And because the branch is the most expensive channel in banking, closing one appears to be a good move. This might be based on stats that show around<\/span> 73% of the world\u2019s interactions with banks<\/span><\/a> now take place through digital channels.<\/span><\/p>\n

Conversely, this means fewer people go into branches, so it seems the physical locations might not be as important as they were in the past. However, deeper analysis reveals something important: The utilisation of digital banking is mostly about basic services, like money transfers, managing their own account and bill payments.<\/span><\/p>\n

When it comes to selling, branches are more successful than digital channels: In<\/span>\u00a0North America, branches accounted for 72% of newly acquired current accounts<\/span><\/a> in 2023 according to Finalta by McKinsey. And for mortgage origination,<\/span> more than 50% of borrowers are within 10 miles of their branch<\/span><\/a>.<\/span> Additionally, similar, rather complex selling, like investments, advice on a retirement plan or education saving plan, are difficult \u2014 if at all \u2014 to map via digital banking.<\/span><\/p>\n

Unfortunately, there has been little focus on these strengths as leaders look predominantly at the rise of digital banking. What they often neglect to examine is the fact that closing a branch turns them into direct competitors of the digital-only banks.<\/span>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text css=””]<\/p>\n

Transforming Branch Operations<\/span><\/h3>\n

The cost of branches is real in terms of human staffing requirements and the rent for the building and related facilities. That\u2019s part of the picture. But you also need to analyse what\u2019s being done at the branches today \u2014 and the services they\u2019re delivering to determine ROI.<\/span><\/p>\n

For example, people often come into a branch to simply transfer money or set up a PIN for online banking. They use the branch for simple, transactional services when there are much more convenient and more cost-effective options available, such as digital self-service<\/a>.<\/span><\/p>\n

A better approach is to reduce those low-value services delivered at branches today, and free up branch staff\u2019s capacity to focus on what they can do best, which is offering advice and selling. To do that effectively requires deeper insight into how customers are engaging<\/a> with your bank across physical and digital touchpoints.<\/span>[\/vc_column_text][vc_single_image image=”568691″ css=”.vc_custom_1745424380523{margin-top: 1.0em !important;border-bottom-width: 1.0em !important;}”][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text css=””]<\/p>\n

Predicting Banking Customer Needs<\/span><\/h3>\n

When you understand why somebody is connecting with your bank \u2014 every time they engage \u2014 you can send them to the best resource.<\/span><\/p>\n

Let\u2019s say a customer visited a branch yesterday to discuss investment options and retirement plans. Then he calls in the next day to provide additional information. He is routed to the call centre, where an IVR<\/a> collects basic information, like customer identification, authentication and qualifying the call reason. After this step, the customer is handed over to an agent \u2013 as there is no option of being transferred to a branch. And then, finally, the customer is transferred manually to the branch.<\/span><\/p>\n

This happens because that bank doesn\u2019t understand why the customer is calling or their recent interactions. Ideally, this customer would be greeted with, \u201cYou stopped by a branch yesterday, is your call related to that?\u201d and then decide if it makes sense to forward the customer to their branch.<\/span><\/p>\n

To avoid this cumbersome process, some customers call their bank advisors directly on a mobile phone. Not only does this introduce security risks and regulatory concerns, but there\u2019s also no way for that conversation to become part of the bank\u2019s overall understanding of the customer\u2019s experience.<\/span><\/p>\n

If you can capture and manage those conversations though, then you can decide whether it makes sense to directly connect a customer with his advisor at the branch. Likewise, if it\u2019s a different issue, you might send a link to the customer\u2019s mobile phone for self-service, for example.<\/span><\/p>\n

The challenge is the gap in operations between how the branch model works and how digital models work. A cloud-based customer experience solution like the Genesys Cloud<\/a><\/span>\u2122<\/span>\u00a0platform helps bridge that gap. It gives banks a 360-degree view of the customer<\/a>, with the opportunity to use real-time insights<\/a> into what each customer needs and how to best serve them.<\/span>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text css=””]<\/p>\n

Optimising Customer Journeys Across Touchpoints<\/span><\/h3>\n

Today\u2019s banking customers engage using multiple channels \u2014 online, mobile and in-person at branches. Yet many banks lack unified visibility into these interactions, especially at the branch level. This disconnect creates blind spots in the customer journey<\/a> and makes it difficult to deliver seamless service.<\/span><\/p>\n

When touchpoints are integrated, banks can design journeys that are more efficient, personalised and frictionless<\/a>. The key is using customer intelligence to understand the context behind each interaction.<\/span><\/p>\n

Not every inquiry requires the same level of engagement. Low-value requests \u2014 like changing an address \u2014 should be handled digitally with self-service options. But high-value services, such as private banking, wealth management or corporate advisory, demand a personal touch from someone with a unique skill set.<\/span><\/p>\n

Routing customers effectively requires situational awareness and data-informed decisions. And these insights enable bankers to sell more products. It starts with a single point of contact.<\/span><\/p>\n

When a customer calls the general customer support number, the system should route them intelligently based on their profile, history and likely intent. Predictive analytics can identify why they\u2019re calling \u2014 even before they explain \u2014 making the experience smoother and more satisfying.<\/span><\/p>\n

Sometimes it may even make sense to include branch staff in a virtualised sales and service network. Consider this: We\u2019ve all endured the irony of being told \u201cYou\u2019re important to us.\u201d while also being stuck at position 115 in a queue. Smarter alternatives, like offering a callback or routing the call to an available advisor in a nearby branch, can help to improve satisfaction while optimising staff capacity.<\/span><\/p>\n

Genesys has found that banks in the Benelux region \u2014 Belgium, Netherlands, Luxembourg \u2014 have <\/span>pioneered a \u201cring of service\u201d model: If the centralised sales and service centre or a branch is unavailable to assist a customer, the next closest branch is contacted, then the next, and so on. This ensures that no customer is left waiting too long, and that underutilised resources across the network are put to productive use.<\/span>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][vc_column_text css=””]<\/p>\n

Raising the Bar on Banking Customer Engagement<\/span><\/h3>\n

There’s no doubt that the total number of bank branches will be reduced.<\/span><\/p>\n

But if you’re closing all your branches, you\u2019re running into competition with others that have a better cost structure and more focus on the customer experience<\/a>. It is more promising to redefine the role of the branches and emphasise their advantages, namely customer proximity and personal advice on complex products.<\/span><\/p>\n

Investing in a flexible interplay of digital and physical touchpoints in customer contact and the seamless connection of both worlds enables a more efficient organisation of the customer relationship through cost savings in service provision while at the same time increasing the likelihood of sales success. This way, the branch network becomes a competitive differentiator.<\/span><\/p>\n

Genesys Cloud offers the reliability, scalability and innovative capabilities to help banks meet shifting customer demands. Read \u201c<\/span>Why companies choose Genesys Cloud<\/span><\/a>\u201d to discover why leading brands choose Genesys Cloud<\/span>\u00a0for their CX transformation.<\/span>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner][vc_column_inner][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_column_text]Banks are steadily closing branch offices in favour of digital-only engagements, but it could be costing these financial institutions once-loyal customers. Bank branches have long served as the human touchpoint of the financial services world. Yet traditional banks continue to close them at accelerating rates. On the surface, this appears to make sense \u2013 branches […]<\/p>\n","protected":false},"author":1154,"featured_media":568680,"template":"","tax_priority":[54],"tax_blogtype":[17751],"tax_blogcategory":[15939,13125,13232,17631],"tax_contenttheme":[14850],"tax_bundle":[],"tax_contenttheme2":[16107],"tax_capability_sitewide":[16209,18168,16260],"tax_products_programs":[16489,17531],"tax_buying_job":[16642],"tax_buyer_persona":[16881,16900,18584],"tax_sector":[16937],"tax_segment":[17096,17121,17123],"class_list":["post-582745","blog","type-blog","status-publish","has-post-thumbnail","hentry","tax_priority-54","tax_blogtype-genesys-en-gb","tax_blogcategory-ai-and-machine-learning-en-gb","tax_blogcategory-cloud-en-gb","tax_blogcategory-digital-en-gb","tax_blogcategory-industries-en-gb","tax_contenttheme-improve-customer-experience-en-gb","tax_contenttheme2-grow-your-business-en-gb","tax_capability_sitewide-ai-and-automation-en-gb","tax_capability_sitewide-cloud-migration-en-gb","tax_capability_sitewide-digital-en-gb","tax_products_programs-genesys-ai-en-gb","tax_products_programs-genesys-cloud-cx-en-gb","tax_buying_job-job-1-problem-identification-en-gb","tax_buyer_persona-business-en-gb","tax_buyer_persona-technical-en-gb","tax_buyer_persona-technical-en-gb-2","tax_sector-financial-en-gb","tax_segment-enterprise-en-gb","tax_segment-midsized-en-gb","tax_segment-smb-en-gb","tax_content_type-blog-en-gb"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/blog\/582745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/users\/1154"}],"version-history":[{"count":4,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/blog\/582745\/revisions"}],"predecessor-version":[{"id":582749,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/blog\/582745\/revisions\/582749"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/media\/568680"}],"wp:attachment":[{"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/media?parent=582745"}],"wp:term":[{"taxonomy":"tax_priority","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_priority?post=582745"},{"taxonomy":"tax_blogtype","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_blogtype?post=582745"},{"taxonomy":"tax_blogcategory","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_blogcategory?post=582745"},{"taxonomy":"tax_contenttheme","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_contenttheme?post=582745"},{"taxonomy":"tax_bundle","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_bundle?post=582745"},{"taxonomy":"tax_contenttheme2","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_contenttheme2?post=582745"},{"taxonomy":"tax_capability_sitewide","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_capability_sitewide?post=582745"},{"taxonomy":"tax_products_programs","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_products_programs?post=582745"},{"taxonomy":"tax_buying_job","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_buying_job?post=582745"},{"taxonomy":"tax_buyer_persona","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_buyer_persona?post=582745"},{"taxonomy":"tax_sector","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_sector?post=582745"},{"taxonomy":"tax_segment","embeddable":true,"href":"https:\/\/www.genesys.com\/en-gb\/wp-json\/wp\/v2\/tax_segment?post=582745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}